A new partnership has been formed to boost digital merchant payments across Pakistan. The initiative brings together Karandaaz Pakistan and the Better Than Cash Alliance, which is hosted by the United Nations Development Programme (UNDP). The collaboration aims to increase the use of digital payment solutions among merchants and small businesses nationwide.
The UN Launch of this partnership will focus on expanding digital payment acceptance through Pakistan’s instant payment system, Raast. A key part of the initiative is the creation of the National Merchant Payments Working Group. This platform will bring together major stakeholders from the financial and payments sector to support merchant digitization.
Pakistan has made strong progress in developing its digital financial infrastructure. The introduction of Raast Person-to-Merchant (P2M) payments has opened new opportunities for businesses. However, many merchants still rely on cash transactions. The new initiative seeks to address this challenge by reducing barriers to digital payment adoption and improving access for women entrepreneurs and small merchants.
The National Merchant Payments Working Group will operate under the guidance of the State Bank of Pakistan. It will serve as a neutral platform where banks, fintech companies, payment service providers, merchant associations, and other industry participants can work together. The group will identify challenges, develop practical solutions, and provide recommendations to support future policies.
The UN Launch also aims to encourage collaboration between policymakers and industry leaders. Through discussions and pilot projects, the Working Group will explore ways to improve merchant payment acceptance across the country. These efforts are expected to create a more efficient and inclusive digital payments ecosystem.
Speaking about the initiative, Waqas ul Hasan, CEO of Karandaaz Pakistan, said that Pakistan must move beyond person-to-person transfers and focus on digitizing everyday business transactions. He noted that helping small businesses adopt digital payments can unlock new economic opportunities and support the transition toward a cashless economy.
The Better Than Cash Alliance will contribute global expertise from projects implemented across Asia, Africa, and Latin America. Karandaaz Pakistan will provide local knowledge, research, and strong connections with banks, fintech firms, and regulators.
According to Nshuti Mbabazi, Managing Director of the Better Than Cash Alliance, digital payments can improve transparency, efficiency, and financial inclusion. He emphasized that widespread adoption requires cooperation between merchants, suppliers, and financial service providers.
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The UN Launch of the National Merchant Payments Working Group marks an important step toward building a more connected and inclusive digital economy in Pakistan. The group will focus on creating sustainable payment models, encouraging knowledge sharing, and supporting future regulatory development to strengthen the country’s digital payments landscape.
